CSGP - Dan Loeb's Third Point takes new stake in CoStar Group

Dan Loeb's hedge fund Third Point (TPNTF) took a new stake in real estate information company CoStar Group (CSGP), according to the fund's first quarter letter.We believe the "business will be a direct beneficiary of the impending wave off COVID-induced disruption in the CRE market," Loeb said in the letter.The recent acquisition of Ten-X also unlocks a "transformational" revenue opportunity for the company."As Ten-X scales, we believe CoStar should be able to accelerate revenue growth from mid-teens to 20% and drive EBITDA growth from 20% to 30% over time," Loeb wrote.Third Point returned +11.0% in its flagship Offshore Fund in Q1.CoStar fell 8% when it reported 1Q results last week despite  beating estimates and raised guidance.In early March, CoStar dropped its bid for CoreLogic as mortgage rates rose.

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Dan Loeb's Third Point takes new stake in CoStar Group